Breaking Even or Breaking Through : Reaching Financial Sustainability while Providing High Quality Standards in Higher Educationin the Middle East and North Africa
Higher education (HE) systems worldwideare faced with three main challenges: providing young peoplewith the skills required by the job market; improving accessto high quality services; and seeking out new sources offinancing to cope with the growing student demand. Thisdocument will provide evidence on the need to seeksustainable financing strategies for countries in MiddleEast and North Africa (MENA), whether they are high incomeeconomies, such as the oil producing countries, or low tomiddle income economies. Chapter one presents an overalldescription of HE graduates and the many challenges theyface in their transition into the workforce. The differentelements that affect this transition are discussed andspecial attention is given to the mismatches between laborsupply and demand. Chapter two analyses the current levelsof spending on HE, projects the future financing gaps takinginto account the need to continue expanding access andimproving quality and relevance, and provides a frameworkfor funding approaches linked to meeting access, equity, andquality goals. Chapter three outlines ways of using currentfunds in more effective ways, emphasizing the need to alignfinancing allocations with policy goals. Innovative fundingallocations that link funding to performance and demand- aswell as supply-side mechanisms are discussed. Chapter fourdiscusses different ways to diversify sources of funding andpresents alternative methods of cost-sharing. The chapteremphasizes the equity measures needed for cost-sharingmechanisms, such as student fees, and provides an overviewof student loan programs used in MENA and elsewhere. Chapterfive discusses the role of private provision of HE, and howthis can be an alternative to increase access and quality,provided the necessary regulatory and quality controls arein place. Chapter six describes an alternative source offunding not yet common in MENA, namely the use ofphilanthropic resources to build endowments to support HE.